How to Start a Business in Tasmania in 2026: Registrations, Licences, Workers Compensation and Payroll Tax

Tasmania is a small-business state: most employers are small, many are regional, and a lot of new ventures are in tourism, food and drink, trades and creative work. The registrations you need are mostly national, but the Tasmanian layer has its own quirks — compulsory workers compensation from your first employee, food business risk classes, CBOS licensing for builders and tradies, and a payroll tax structure with two rates. This guide is for anyone starting out in Tasmania in 2026, from a Hobart café to a Launceston electrician or a cellar door in the Tamar Valley. It sets out each step in order, flags what is Tasmanian, and works through examples in A$.

Quick answer

To start a business in Tasmania: choose a structure, get a free ABN and register a business name or company nationally, then use ABLIS or Business Tasmania (1800 440 026) to list your licences. Get council approval before selling food, take out workers compensation with a licensed insurer before your first employee starts, and register for payroll tax only once Australian wages exceed A$1.25 million a year.

• ABN free; business name A$47 a year; company A$636

• Builders, plumbers and electricians are licensed through CBOS

• No small-wages exemption for workers compensation

• Payroll tax: 4% to A$2 million, 6.1% above

• Free advice: up to 2 hours for new businesses, up to 5 hours once established

What's national and what's Tasmanian

There's no Tasmanian business register to sign up to. Since 2012, business names have been registered nationally by ASIC, and the ABN, company, GST and PAYG registrations are all federal. That means the first half of starting up is identical in Hobart, Burnie or Brisbane, and our national guide on how to start a business in Australia covers it in detail.

The Tasmanian part is made up of occupational licences, mostly through Consumer, Building and Occupational Services (CBOS); liquor licensing; council approvals for planning, building and food; compulsory workers compensation insurance, regulated by WorkSafe Tasmania and the WorkCover Tasmania Board; payroll tax through the State Revenue Office; and the free advice that Business Tasmania provides. Tasmania referred its private-sector industrial relations powers to the Commonwealth, so employment conditions come from the national Fair Work system.

Starting a business in Tasmania, in order

Step 1

Choose a structure

Step 2

ABN + business name or company

national

Step 3

Licences

CBOS, liquor, others

Step 4

Council approvals

planning, food

Step 5

Bank, insurance, workers comp

before your first hire

Step 6

Payroll tax

above A$1.25m

Step 1: Choose a structure

Most Tasmanians start as a sole trader, trading under their own name and tax file number and paying individual tax rates. It's the simplest and cheapest option, but you're personally liable for everything the business owes. A company is a separate legal entity that generally limits your liability and pays 25% tax if it's a base rate entity, but it costs more to set up and run and directors take on legal duties. Partnerships suit two or more people in business together, and trusts are common for family businesses and farms. Our business structures guide explains the trade-offs.

Think about the structure before you apply for licences. CBOS licenses individuals for building and plumbing work, and a company carrying out licensed work must have appropriately licensed people doing and supervising it. For workers compensation, a company that pays its working directors may have to insure them, while a sole trader with no staff has nothing to insure. For payroll tax, related businesses are grouped, so splitting a business into several entities doesn't create several thresholds.

Step 2: National registrations

Apply for your ABN through the Business Registration Service — it's free, and online applications are often approved immediately, though the ATO can take up to 20 business days if it needs to check your entitlement. Our ABN registration guide explains who qualifies. If you'll trade under a name other than your own, register a business name for A$47 a year or A$108 for three.

To incorporate, register a company with ASIC for A$636 once each director has a director ID. Register for GST within 21 days of your turnover reaching, or being expected to reach, A$75,000 — many tourism and hospitality businesses pass that in their first year. Register for PAYG withholding before your first pay run, and open a separate business account; see our business bank account guide.

Step 3: Tasmanian licences

Business Tasmania helps with licence and permit questions through ABLIS, which lists federal, state and council requirements for your activity and location. The licences new Tasmanian businesses most often need are:

Building and trade work

Tasmania's Building Act 2016 sorts building work into risk categories. High-risk work needs a building permit and must be carried out by a licensed builder; some lower-risk work can be done by a licensed builder without a permit; and some work, such as paving, concreting, painting and landscaping, doesn't need a builder's licence at all. CBOS licenses builders in different categories according to the type and scale of buildings, and tells consumers to check a builder's licence before signing any residential building contract. Plumbers, gasfitters and electricians need CBOS licences for their work regardless of job size. Use the CBOS online licence search to check what your category allows before you advertise.

Food businesses

Under the Food Act 2003, every Tasmanian business that handles or sells food needs council approval — including home-based businesses and charities selling food to raise funds. Councils classify businesses by risk. Higher-risk businesses (classes P1 to P3, such as cafés and restaurants) must register with the council, usually each year; lower-risk ones (P3-N and P4) only need to notify before starting. A mobile food business can get a registration that's valid across the state, which suits food vans that trade at events in several council areas.

Category one and two businesses under the national food safety standards — those handling unpackaged, ready-to-eat, potentially hazardous food — must also appoint a food safety supervisor, train food handlers and keep records. The supervisor's certificate must have been obtained within the last 5 years.

Step 4: Premises and council approvals

Tasmania has 29 councils, and each administers the planning scheme for its area. Before you sign a lease, ask the council's planners whether your use is allowed in the zone, whether a change of use needs a planning permit, and whether the fit-out needs building approval. Heritage listing is common in Hobart, Launceston and historic towns, and it can add conditions on signs, shopfronts and alterations. Councils also handle footpath dining, signage and trade waste.

Home-based businesses are common, especially in regional Tasmania. Low-impact work usually doesn't need a permit, but planning schemes limit the floor area used, staff who don't live there, customer visits and signs. Food made at home for sale needs council approval, and your kitchen must meet the food safety standards. Short-stay accommodation, now a large part of the Tasmanian visitor economy, has its own planning permit rules — check them before you list a property.

Read any commercial lease carefully, especially rent reviews, outgoings, make-good clauses and personal guarantees, and get advice before signing. Business Tasmania can point you to the right help with lease questions.

Step 5: Insurance and workers compensation

Public liability insurance is often required by landlords, councils and market organisers, and professional indemnity is compulsory in some professions. Workers compensation is the one the law requires as soon as you employ.

In Tasmania, an employer must either take out a workers compensation policy with an insurer licensed by the WorkCover Tasmania Board or, usually only for large businesses, hold a permit to self-insure. There's no small-wages exemption: a worker is anyone working for you under a contract of employment, whether full-time, part-time or casual and however they're paid. A domestic worker in a private household is treated as a worker once they've worked 48 hours in total for that employer. Not insuring is a breach of the Workers Rehabilitation and Compensation Act 1988 and can lead to substantial fines and liability for claims.

Premiums are set by the licensed insurers, who take into account your industry, wages and claims history. WorkSafe Tasmania publishes suggested premium rates for 2026-27 by industry, which are a useful starting point for budgeting before you ask for quotes. As a sole trader with no workers, you aren't covered by a policy, so look at personal accident and income protection insurance. Our workers compensation guide compares the states.

Tasmanian numbers to know (2026)

A$1.25 million

Payroll tax threshold

A$24,038 a week during a month

4%

Rate on wages up to A$2 million

6.1%

Rate on wages above A$2 million

up to 2 hours

Free advice for new businesses

each financial year

A$100,000 to A$5 million

Business Growth Loan Scheme loans

until 18 December 2026 (5 pm), or earlier if funds run out

Step 6: Hiring your first employee

Tasmanian private-sector employers are in the national Fair Work system, so modern awards and the National Employment Standards set minimum pay and conditions. From 1 July 2026 the national minimum wage is A$26.44 an hour and super guarantee is 12%, paid with each pay cycle under Payday Super. WorkSafe Tasmania enforces work health and safety, and long service leave follows Tasmanian law.

Before your first employee starts, register for PAYG withholding, set up Single Touch Payroll, take out workers compensation, find the right award and classification, and give the Fair Work Information Statement — and the Casual Employment Information Statement for casuals. Seasonal hospitality and tourism businesses should pay particular attention to casual conversion rules and penalty rates, which are where most underpayment problems start.

Your first Tasmanian employee — checklist in order

1. 1

   Take out workers compensation

   Get a policy from a licensed insurer before day one — there's no wages exemption.

2. 2

   Register for PAYG withholding

   Do it with the ATO before the first pay run.

3. 3

   Check the award

   Hospitality, retail and tourism awards have penalty rates for weekends and public holidays.

4. 4

   Set up STP and Payday Super

   Report each pay to the ATO and pay super with each pay cycle.

5. 5

   Give the required statements

   Fair Work Information Statement; Casual Employment Information Statement for casuals.

Step 7: Payroll tax in Tasmania

Tasmania's payroll tax is collected by the State Revenue Office. For 2026-27 there are two thresholds and rates: no tax on Australian wages up to A$1.25 million, 4% for wages from A$1.25 million to A$2 million, and 6.1% for wages above A$2 million. An employer paying wages in Tasmania is liable once its total Australian wages exceed A$1.25 million a year, or A$24,038 a week during a month. Monthly thresholds vary with the number of days in the month, and the SRO publishes a calculator.

Taxable wages include salary, super, bonuses, fringe benefits, directors' fees and some contractor payments. Every member of a group whose combined Australian wages exceed the threshold must register through Tasmanian Revenue Online, with documents such as the company extract, trust deed or partnership agreement. Our payroll tax by state guide explains grouping and contractors.

Worked examples in A$

A Hobart café run through a company

Ella and Tom set up a company to open a café near the Hobart waterfront. Their government registration costs are A$636 for the company and free for the ABN, plus A$342 a year for the ASIC annual review. They trade under the company name, so no separate business name is needed. Before signing the lease they check with the City of Hobart that a café is permitted and whether the heritage listing affects their signage, apply for building approval for the kitchen, register the food business with the council and have Ella complete food safety supervisor training.

They'll hire three casuals from the first week, so they take out a workers compensation policy before opening, using WorkSafe Tasmania's suggested 2026-27 rate for cafés to budget and getting quotes from licensed insurers. Their expected wages of around A$200,000 are far below A$1.25 million, so payroll tax doesn't apply.

A Launceston manufacturer crossing the payroll tax threshold

A Launceston food manufacturer grows to A$1.6 million of Australian taxable wages, all paid in Tasmania. It became liable — and had to register — once its wages exceeded A$24,038 a week during a month. With total wages below A$2 million, it pays 4% on wages above the threshold: (A$1,600,000 − A$1,250,000) × 4% = A$14,000 a year. If it grew beyond A$2 million, the higher 6.1% rate would apply, and the SRO's calculator shows the exact amount.

The two Tasmanian examples side by side

Item	Hobart café company	Launceston manufacturer
ABN	free	free
Company	A$636 + A$342 a year	Already incorporated
Council	Planning check, building approval, food registration	Food registration for the factory
Workers compensation	Yes — from the first casual	Yes
Payroll tax	No — under A$1.25 million	About A$14,000 a year

ABN

Hobart café company

free

Launceston manufacturer

free

Company

Hobart café company

A$636 + A$342 a year

Launceston manufacturer

Already incorporated

Council

Hobart café company

Planning check, building approval, food registration

Launceston manufacturer

Food registration for the factory

Workers compensation

Hobart café company

Yes — from the first casual

Launceston manufacturer

Yes

Payroll tax

Hobart café company

No — under A$1.25 million

Launceston manufacturer

About A$14,000 a year

Grants, loans and free support in Tasmania

There's no general Tasmanian grant for starting a business. In October 2026 the main open state program is the Business Growth Loan Scheme: a A$60 million fund offering loans of A$100,000 to A$5 million over up to five years, with a concessional interest rate for the first three years, for Tasmanian businesses with an active ABN and GST registration whose growth projects can't be funded on commercial terms. Applications close at 18 December 2026 (5 pm), or earlier if funds run out, and you start by emailing the Department of State Growth. It's aimed at established businesses, not start-ups — compare it with the options in our small business loans guide.

Free advice is the most useful support for new businesses. Business Tasmania answers questions on 1800 440 026, Monday to Friday, and helps with licences. Its New Business Support Service gives anyone without an ABN, or with an ABN less than 12 months old, up to 2 hours of free advice each financial year from an adviser of your choice — face to face, online or by phone — on business planning, marketing, finances and legal obligations. Once your ABN is 12 months old, and if you have up to 19 full-time equivalent staff, the Tasmanian Business Advice Service offers up to 5 hours a year.

Common mistakes when starting in Tasmania

Hiring a casual before insuring. Tasmania has no wages exemption. Fix: take out the policy before the first shift.

Notifying when you should register. Cafés and restaurants are higher-risk and must register, not just notify. Fix: ask the council's environmental health officer which class you're in.

Doing permit building work without the right licence category. Fix: check your CBOS licence category covers the job before quoting.

Forgetting heritage controls. Many shopfronts in Hobart and Launceston are heritage-listed. Fix: ask the council about signage and alterations before you sign a lease.

Counting only salaries for payroll tax. Super, bonuses and fringe benefits count too. Fix: track total Australian wages against A$24,038 a week each month as you grow.

Official links

• Business Tasmania — New Business Support ServiceFree advice, 1800 440 026
• Business Registration ServiceABN, business name and tax registrations
• SRO Tasmania — Payroll tax rates and thresholds2026-27 rates and calculator
• SRO Tasmania — Payroll tax registrationWhen you're liable and how to register
• WorkSafe Tasmania — Workers compensation insuranceEmployer obligations and suggested rates
• ABLIS — Tasmanian food business notification/registrationCouncil approval for food businesses
• Department of State Growth — Business Growth Loan SchemeLoans for growing businesses

What to do next

Estimate your set-up costs with our startup cost calculator, apply for your ABN, and book your free New Business Support session through Business Tasmania. If you're comparing locations, see our guides to starting a business in Victoria, South Australia and the ACT.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Do I need to register my business with the Tasmanian Government?

No — there's no general Tasmanian business register. Your ABN, business name and company are national registrations through the Business Registration Service and ASIC. Tasmania comes in for occupational licences through CBOS, liquor licences, council food and planning approvals, compulsory workers compensation insurance once you employ, and payroll tax once Australian wages exceed A$1.25 million.

How much does it cost to register a business in Tasmania?

An ABN is free. A business name is A$47 for one year or A$108 for three, and registering a company costs A$636 plus A$342 a year. Council food and planning fees, CBOS licence fees and insurance come on top and vary by council and industry.

Is workers compensation compulsory in Tasmania for one employee?

Yes. Tasmanian employers must either insure with a licensed insurer or hold a self-insurance permit, and there's no small-wages exemption. A worker includes full-time, part-time and casual staff, however they're paid. A domestic worker in a private household becomes a worker after 48 hours of employment in total. Sole traders with no workers don't need a policy.

What is the payroll tax threshold in Tasmania for 2026-27?

For 2026-27 Tasmania charges no payroll tax on Australian wages up to A$1.25 million, 4% for wages from that amount to A$2 million, and 6.1% above A$2 million. You're liable once Australian wages exceed A$1.25 million a year, or A$24,038 a week during a month, and register through Tasmanian Revenue Online.

Where can I get free business advice in Tasmania?

Business Tasmania (1800 440 026) answers questions and helps with licences. Its New Business Support Service gives people without an ABN, or with an ABN under 12 months old, up to 2 hours of free advice each financial year. Businesses with an ABN for 12 months or more and up to 19 full-time staff can get up to 5 hours through the Tasmanian Business Advice Service.

Are there grants to start a business in Tasmania?

There's no general start-up grant. The Tasmanian Government's main open program in October 2026 is the Business Growth Loan Scheme — concessional loans of A$100,000 to A$5 million for established businesses with expansion projects banks won't fully fund, open until 18 December 2026 (5 pm), or earlier if funds run out. Check Business Tasmania for grant rounds and the business.gov.au finder for federal programs.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.New Business Support Service — Business Tasmania (Department of State Growth) · accessed 12 October 2026
2. 2.Payroll tax rates and thresholds — State Revenue Office of Tasmania · accessed 12 October 2026
3. 3.Payroll tax registration — State Revenue Office of Tasmania · accessed 12 October 2026
4. 4.Workers compensation insurance — WorkSafe Tasmania · accessed 12 October 2026
5. 5.Residential consumer guide — Consumer, Building and Occupational Services (CBOS) · accessed 12 October 2026
6. 6.Notification / Registration of a Food Business – Tasmania — ABLIS (Australian Government) · accessed 12 October 2026
7. 7.Business Growth Loan Scheme — Department of State Growth (Tasmania) · accessed 12 October 2026
8. 8.Food safety supervisor — Food Standards Australia New Zealand · accessed 12 October 2026
9. 9.Food businesses — Meander Valley Council · accessed 12 October 2026